Local Government Association News

11 Sep 2025

NAO report on residential care costs for children – LGA response

Embargo: 00.01 Friday 12 September 2025
Contact: David Mills, Local Government Association media office, 020 7664 3333

Responding to a report by the National Audit Office, which found residential care costs for looked-after children have almost doubled in five years, Cllr Amanda Hopgood, Chair of the Local Government Association’s Children, Young People and Families Committee, said:

“Our priority is ensuring that children get the very best care and support. However, with more children needing help with increasingly complex and challenging needs, a lack of appropriate homes and the challenges with commissioning those placements are leading to an escalation in costs.

“The astronomical cost of care placements also means there is less money available for councils to spend on the earlier help children so desperately need. We would also like to see greater financial oversight of the largest providers, with some making huge profits when money should be invested in supporting children.

“In the Autumn Budget, the Government should ensure all councils receive sufficient funding to invest long-term into family help, child protection, and child in care and care leaver services. 

“It should also develop a cross-government strategy for children, young people and families to ensure all partners are working towards a shared ambition.”

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